Best Free-Cash-Flow Margins: Communication Services
The Communication Services cash machines of the S&P 500
Updated October 11, 2026
Cash conversion is structural before it’s managerial — an asset-light business model throws off more of each sales dollar than a capital-hungry one, whoever runs it. So the fair question isn’t whether a Communication Services company clears a market-wide bar; it’s who converts best inside the sector, where everyone faces roughly the same capital demands. The Communication Services median free-cash-flow margin is 12%; these are the names furthest above it.
| # | Stock | FCF margin | Free cash flow (TTM) | Revenue (TTM) |
|---|---|---|---|---|
| 1 | TKOTKO Group Holdings, Inc.Entertainment | 32% | $1.7B | $5.3B |
| Entertainment — converts 32% of revenue to free cash ($1.7B on $5.3B in sales), against a Communication Services median of 12%. | ||||
| 2 | TTDThe Trade Desk, Inc.Advertising Agencies | 29% | $860M | $3.0B |
| Advertising Agencies — converts 29% of revenue to free cash ($860M on $3.0B in sales), against a Communication Services median of 12%. | ||||
| 3 | EAElectronic Arts Inc.Electronic Gaming & Multimedia | 26% | $2.1B | $7.8B |
| Electronic Gaming & Multimedia — converts 26% of revenue to free cash ($2.1B on $7.8B in sales), against a Communication Services median of 12%. | ||||
| 4 | NFLXNetflix, Inc.Entertainment | 23% | $11.0B | $48.4B |
| Entertainment — converts 23% of revenue to free cash ($11.0B on $48.4B in sales), against a Communication Services median of 12%. | ||||
| 5 | FOXAFox CorporationEntertainment | 21% | $3.6B | $17.1B |
| Entertainment — converts 21% of revenue to free cash ($3.6B on $17.1B in sales), against a Communication Services median of 12%. | ||||
| 6 | METAMeta Platforms, Inc.Internet Content & Information | 18% | $41.0B | $228.2B |
| Internet Content & Information — converts 18% of revenue to free cash ($41.0B on $228.2B in sales), against a Communication Services median of 12%. | ||||
| 7 | TMUST-Mobile US, Inc.Telecommunications Services | 17% | $15.8B | $92.2B |
| Telecommunications Services — converts 17% of revenue to free cash ($15.8B on $92.2B in sales), against a Communication Services median of 12%. | ||||
| 8 | CMCSAComcast CorporationTelecommunications Services | 16% | $20.4B | $124.9B |
| Telecommunications Services — converts 16% of revenue to free cash ($20.4B on $124.9B in sales), against a Communication Services median of 12%. | ||||
| 9 | VZVerizon Communications Inc.Telecommunications Services | 15% | $21.4B | $138.9B |
| Telecommunications Services — converts 15% of revenue to free cash ($21.4B on $138.9B in sales), against a Communication Services median of 12%. | ||||
| 10 | DASHDoorDash, Inc.Internet Content & Information | 15% | $2.4B | $15.9B |
| Internet Content & Information — converts 15% of revenue to free cash ($2.4B on $15.9B in sales), against a Communication Services median of 12%. | ||||
| 11 | TAT&T Inc.Telecommunications Services | 14% | $17.7B | $127.2B |
| Telecommunications Services — converts 14% of revenue to free cash ($17.7B on $127.2B in sales), against a Communication Services median of 12%. | ||||
| 12 | GOOGAlphabet Inc.Internet Content & Information | 12% | $53.3B | $445.9B |
| Internet Content & Information — converts 12% of revenue to free cash ($53.3B on $445.9B in sales), against a Communication Services median of 12%. | ||||
| 13 | GOOGLAlphabet Inc.Internet Content & Information | 12% | $53.3B | $445.9B |
| Internet Content & Information — converts 12% of revenue to free cash ($53.3B on $445.9B in sales), against a Communication Services median of 12%. | ||||
| 14 | NWSANews CorporationEntertainment | 12% | $1.1B | $9.0B |
| Entertainment — converts 12% of revenue to free cash ($1.1B on $9.0B in sales), against a Communication Services median of 12%. | ||||
| 15 | NWSNews CorporationEntertainment | 12% | $1.1B | $9.0B |
| Entertainment — converts 12% of revenue to free cash ($1.1B on $9.0B in sales), against a Communication Services median of 12%. | ||||
| 16 | OMCOmnicom Group Inc.Advertising Agencies | 11% | $2.4B | $22.4B |
| Advertising Agencies — converts 11% of revenue to free cash ($2.4B on $22.4B in sales), against a Communication Services median of 12%. | ||||
| 17 | FOXFox CorporationEntertainment | 9% | $1.5B | $17.1B |
| Entertainment — converts 9% of revenue to free cash ($1.5B on $17.1B in sales), against a Communication Services median of 12%. | ||||
| 18 | DISThe Walt Disney CompanyEntertainment | 8% | $8.3B | $98.9B |
| Entertainment — converts 8% of revenue to free cash ($8.3B on $98.9B in sales), against a Communication Services median of 12%. | ||||
| 19 | CHTRCharter Communications, Inc.Telecommunications Services | 8% | $4.4B | $54.4B |
| Telecommunications Services — converts 8% of revenue to free cash ($4.4B on $54.4B in sales), against a Communication Services median of 12%. | ||||
| 20 | WBDWarner Bros. Discovery, Inc.Entertainment | 6% | $2.2B | $36.1B |
| Entertainment — converts 6% of revenue to free cash ($2.2B on $36.1B in sales), against a Communication Services median of 12%. | ||||
| 21 | LYVLive Nation Entertainment, Inc.Entertainment | 5% | $1.4B | $26.3B |
| Entertainment — converts 5% of revenue to free cash ($1.4B on $26.3B in sales), against a Communication Services median of 12%. | ||||
| 22 | TTWOTake-Two Interactive Software, Inc.Electronic Gaming & Multimedia | 5% | $326M | $6.7B |
| Electronic Gaming & Multimedia — converts 5% of revenue to free cash ($326M on $6.7B in sales), against a Communication Services median of 12%. | ||||
| 23 | PSKYParamount Skydance Corporation Class B Common StockEntertainment | 1% | $440M | $29.4B |
| Entertainment — converts 1% of revenue to free cash ($440M on $29.4B in sales), against a Communication Services median of 12%. | ||||